Skip to main content

Mirae Asset Emerging Bluechip Fund – A Mirae mid-cap fund

 



Seoul-Headquartered Mirae Aset Management has come up with a new fund offer namely Mirae Asset Emerging Bluechip Fund, an open-ended equity fund. This is the fourth equity fund offering, the previous ones being Mirae Asset India Opportunities Fund, Mirae Asset Global Commodity Stocks and Mirae Asset China Advantage Fund. The Emerging Bluechip Fund will invest in Indian equities and equity-related securities of companies which are not part of the top 100 stocks by market capitalisation but have a market capitalisation of at least Rs 100 crore at the time of investment. The fund will not have any theme bias, but will invest in securities with the objective of generating income and long term capital appreciation. It will be benchmarked to the CNX Midcap Index and the fund will have a 65-100% allocation to equity and equity-related securities. It may also invest 0-35% in money market or debt instruments.


   Cashing in on India growth story, the launch of this fund helps Mirae expand its product offering. Mirae Asset believes that on the back of high consumption, India has maintained an average 6%-plus GDP growth rate for a couple of decades. High domestic savings and demographic divide should support the growth momentum further in the coming years. The fund primarily aims to capture India growth and consumption story through this fund. According to the fund's managers, investments in the fund will give investors an opportunity to participate in the growth story of today's emerging companies which have the potential to become market leaders of the future.


The right proportion of mid-caps in the portfolio can help investors optimise their risk adjusted returns. The test of the fund manager will lie in identifying such mid-caps. The fund manager will use a new type of investment approach by combining thematic philosophy and bottom-up approach for stock selection. The fund manager believes that companies with strong balance sheets and good visibility in earnings will outperform given the earnings trajectory in mid-caps is very strong.


   However, investors must note that though adding a mid-cap fund to your portfolio does help in diversifying your portfolio, the performance of the fund depends on a lot on stock picking skills of the fund manager and the overall performance of the stocks selected by the fund manager. Added to this, the timing in terms of entry and exit is critical and could decide the returns offered. Also typically, mid-cap stocks carry a higher risk, in the sense that they fall faster in a downturn. Also, some mid-cap stocks are illiquid and hence, take a beating. Therefore, it is important that the fund manager does not have any concentration.


   The minimum investment amount is Rs 5,000 and there will be an exit load of 1%, if you redeem your units before a year. The NFO for Mirae Asset Emerging Bluechip Fund is currently open and will close on June 22, 2010. The fund will be managed by Gopal Agrawal and Neelesh Surana.

WHY TO INVEST:

To benefit from the emerging India growth story in mid-caps

WHY NOT TO INVEST:

Investing in mid-cap stocks is riskier than largecap stocks. By investing in this fund, one is betting on the mid-cap sector, that too specific to the stock picking skills of the fund manager and also on the performance of the mid-cap companies.

 

Popular posts from this blog

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Stock Dividend Yields

During a bull run, it’s very easy to ignore stocks with high dividend yields. After all, what could be more enticing than a growth stock? But in times of crisis, these boring ones tend to be the most sought after. The reason being that not only do dividends provide a cushion when the market is in the doldrums but such stocks also tend to fall less. The lure of dividend yield stocks is not easy to ignore. These stocks offer capital appreciation as well as cash payments. But logically, any company that pays a substantial portion of its earnings in dividends is reinvesting less and, therefore, would grow at a slower pace. So the trade-off is between higher dividend yields for lower earnings growth. On the other hand, companies with high growth potential and volatile earnings tend to pay less by way of dividends, if at all. Such companies would rather reinvest their earnings to sustain their growth. The capital appreciation of growth stocks is obviously higher than in dividend yield ones. ...

Women need to plan for Retirement

Plan for Retirement Online       Higher life expectancy, lower pay and fewer work years necessitate thorough planning.   Women have raced ahead of men in various fields but, when it comes to retirement planning, they tend to lag behind. Despite saving a higher proportion of their salary, compared to men, women generally do not take retirement planning seriously. Below are some of the reasons why they should: According to the United Nations Department of Economic and Social Affairs, in India, the life expectancy of women is 69 years and, of men, it's 66 years. Due to this, a woman will need an additional `55 lakh to manage her living expenses (see table).Besides, usually, women work fewer years compared to men to take care of children and family.Further, a recent study by Korn Ferry Hay Group shows that women in India earn 18.8% less than men. Not to mention, a higher life expectancy can also mean higher medical expenses as the likelihood of health ailments such as diabetes, high...

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now